Value Chain Analysis of Fertilizer of (in transition to organic) in Region 2
This study was conducted to determine the value chain map of organic fertilizer, identify the various stakeholders and their role in the value chain map, measure value-addition along the value chain, identify the opportunities and challenges in the value chain map, and determine extent of organic agriculture awareness of stakeholders in the value chain map.
Three approaches were used in gathering data needed in establishing value chain map of organic fertilizer, the actors in the value chain map, opportunities and challenges, and value addition along the chain. These are: a) focus group discussion (FGD), b) key informant interview (KII), and c) survey method.
Organic fertilizer in the valley originates from input suppliers who are in general animal raisers, the most dominant of which are swine, cattle, and poultry raisers as source of animal wastes. They are households, commercial raisers, non-government organizations, or individual animal raisers. Crop residue is the second most important input in organic fertilizer production. Corn, and banana crop residues were found to be the primary sources of phosphorus and potassium respectively while nitrogen source are animal wastes particularly chicken dung. Processors or producers of organic fertilizer in the valley are farmers or farmer groups who produce organic fertilizer for their own consumption. The farmers’ cooperatives and one private entrepreneur produce organic fertilizer on commercial scale. Several cooperatives are also engaged in organic fertilizer production but the operations are on infant stage that needs strong technical and financial support from the government and non-government organizations.
Values added along the value chain are highest among processors, followed by input providers. This would imply that any intervention or technological innovations to improve efficiency in organic fertilizer production will benefit most organic fertilizer producers who are the farmers themselves. Opportunities in organic fertilizer production include: increased employment and livelihood opportunities in rural communities, increased utilization of crop residues, biodegradable household wastes and market wastes, and less dependence on inorganic fertilizer. Challenges identified include how to increase the macronutrient content of organic fertilizer, cost-efficient organic fertilizer technology, and quality control process (“certification”) to ensure that the product is “organic” as claimed.